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02/09/2026 - SpecialMonday, February 9, 2026 9:00 AM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Morningside Recreation Center Council Work Session Special Work Session - Final Strategic Planning Session February 9, 2026Council Work Session Special Work Session - Final 1. Call to Order 2. Presentations Review the strategic plan, long term financial forecast for the General Fund and major utility funds, and strategies for budget planning. 2. 1 3. Adjourn Page 2 City of Clearwater Printed on 2/4/2026 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#26-0096 Agenda Date: 2/9/2026 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Council Work Session Agenda Number: 2. 1 SUBJECT/RECOMMENDATION: Review the strategic plan, long term financial forecast for the General Fund and major utility funds, and strategies for budget planning. SUMMARY: Per City Council Policy 3-11, Strategic Direction/Planning, prior to the development of the City Manager’s budget, the City Council shall meet in a strategic planning session to review the five-year financial forecast and update, as necessary, the City’s Vision, Mission, and Strategic Direction. ·Welcome - representatives from Bloomberg Center for Public Impact and facilitator, Alexis Baum ·Revisit and review the strategic plan and financial forecasts ·Working session - strategic planning and future opportunities STRATEGIC PRIORITY: Page 1 City of Clearwater Printed on 2/4/2026 VISION A community that thrives from Bay to Beach. CITY OF CLEARWATER MISSIONSTRATEGIC PLAN Clearwater is committed to quality, sustainable, cost-effective municipal services that foster and sustain a healthy residential and economic environment. HIGH PERFORMING GOVERNMENT ECONOMIC & HOUSING OPPORTUNITY COMMUNITY WELL-BEING ENVIRONMENTAL STEWARDSHIP SUPERIOR PUBLIC SERVICE Deliver Effective and Efficient Services by Optimizing City Assets and Resources Foster a Prosperous and Enduring Economy That Promotes Opportunity for All Ensure Exceptional Communities and Neighborhoods Where Everyone Can Thrive Implement Proactive Solutions and Emerging Technologies for a Sustainable and Resilient Community Promote a Diverse and Talented Workforce Through Competitive Opportunity, Employee Wellness, and Rewarding Career Growth OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES 1.1 Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance. 2.1 Strengthen public-private initiatives that attract, develop, and retain diversified business sectors. 3.1 Support neighborhood identity through services and programs that empower community pride and belonging. 4.1 Support proactive climate resiliency strategies based in science to protect natural and built environments from impacts associated with sea level rise. 5.1 Attract and retain top-quality personnel through the maintenance of a competitive compensation program. 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts. 2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth. 3.2 Preserve community livability through responsible development standards, proactive code compliance, and targeted revitalization. 4.2 Adopt renewable resource usage and waste reduction practices to ensure a vibrant City for current and future generations. 5.2 Encourage professional development through employee educational opportunities, skills- based training, and leadership succession planning. 1.3 1.4 1.5 Adopt responsive levels of service for public facilities and amenities, and identify resources required to sustain that level of service. Foster safe and healthy communities in Clearwater through first-class public safety and emergency response services. Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers. 2.3 2.4 2.5 Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events. Support equitable housing programs that promote household stability and reduce the incidence of homelessness within Clearwater. Facilitate partnerships with educational and research institutions to strengthen workforce development opportunities. 3.3 3.4 Promote marketing and outreach strategies that encourage stakeholder engagement, enhance community education, and build public trust. Inspire citizen participation through civic engagement and volunteerism to build strong, inclusive, and engaged communities. 4.3 4.4 Protect the conservation of urban forests and public green spaces to promote biodiversity and reduce our carbon footprint. Develop accessible and active transportation networks that enhance pedestrian safety and reduce citywide greenhouse gas emissions. 5.3 5.4 Generate organizational success through collaborative engagement and inclusive decision-making to create shared value outcomes. Enhance employee health and productivity through a holistic approach to workplace wellness and benefit resources. FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 Total Millage Rate 5.8850 5.8850 5.8850 5.8850 5.8850 5.8850 5.8850 5.8850 5.8850 5.8850 General Fund Millage Rate 5.6046 5.6046 5.6046 5.6046 5.6046 5.6046 5.6046 5.6046 5.6046 5.6046 Taxable Value % Increase 9.40%4.50%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00% Taxable Value 18,437,566$ 19,267,256$ 20,037,946$ 20,839,464$ 21,673,043$ 22,539,964$ 23,441,563$ 24,379,225$ 25,354,394$ 26,368,570$ Revenues: Property Tax Revenues 99,692,452 103,976,890 107,813,200 112,125,700 116,610,700 121,275,100 126,126,100 131,171,200 136,418,000 141,874,800 Other Revenues 123,711,608 124,318,541 128,518,573 132,855,073 137,332,573 141,955,573 146,728,773 151,657,173 156,745,673 161,999,573 Total Revenues 223,404,060 228,295,431 236,331,773 244,980,773 253,943,273 263,230,673 272,854,873 282,828,373 293,163,673 303,874,373 Less Expenses: Total Expenses (excluding below)186,731,074 194,870,225 203,961,000 215,645,400 222,326,400 231,027,500 240,692,600 250,836,300 261,273,800 272,120,800 Debt Service - Principal & Interest 1,821,925 1,820,675 2,418,175 2,419,425 2,419,175 2,422,425 2,418,925 2,418,925 2,422,175 2,424,000 Transfers to CIP 31,929,331 35,634,910 32,324,280 26,730,790 24,222,870 25,905,720 18,759,330 28,000,000 28,000,000 28,000,000 Tax increment to CRA 3,393,612 3,665,101 3,939,984 4,235,483 4,553,144 4,894,630 5,261,727 5,656,356 6,080,583 6,536,627 Net Operating Income (471,882)$ (7,695,480)$ (6,311,666)$ (4,050,325)$ 421,684$ (1,019,602)$ 5,722,291$ (4,083,208)$ (4,612,885)$ (5,207,054)$ Beginning Unassigned Fund Balance 75,055,250 74,583,368 66,887,887 60,576,221 56,525,897 56,947,581 55,927,979 61,650,271 57,567,062 52,954,177 Ending Unassigned Fund Balance 74,583,368 66,887,887 60,576,221 56,525,897 56,947,581 55,927,979 61,650,271 57,567,062 52,954,177 47,747,123 8.5% Minimum Reserves 18,586,134 19,747,694 20,289,794 20,807,627 21,162,318 22,045,230 22,259,023 23,906,694 24,794,158 25,716,308 Excess Reserves - 8.5% Required 55,997,233$ 47,140,193$ 40,286,428$ 35,718,270$ 35,785,263$ 33,882,750$ 39,391,248$ 33,660,368$ 28,160,019$ 22,030,815$ Ending Unassigned Fund Balance 74,583,368 66,887,887 60,576,221 56,525,897 56,947,581 55,927,979 61,650,271 57,567,062 52,954,177 47,747,123 16.67% Target Minimum Reserves 36,443,401 38,417,523 39,380,880 40,396,032 41,091,545 42,822,203 43,241,988 46,472,717 48,212,300 50,020,133 Excess Reserves vs. 16.67% Target Minimum 38,139,967$ 28,470,365$ 21,195,341$ 16,129,865$ 15,856,036$ 13,105,776$ 18,408,282$ 11,094,345$ 4,741,877$ (2,273,010)$ General Fund Forecast 1/22/2026 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Water & Sewer operating revenues 116,822,181$ 119,319,228$ 127,618,842$ 136,530,024$ 146,099,385$ 156,377,180$ 167,422,749$ Less: operating expenses (66,202,227) (50,432,079) (63,095,154) (66,087,855) (68,694,011) (71,580,035) (70,492,062) Net Operating Income 50,619,954 68,887,149 64,523,688 70,442,169 77,405,374 84,797,145 96,930,687 Non-Operating Income/(Expense): Interest earnings 9,113,885 3,376,879 1,819,957 837,488 871,795 905,502 918,429 Other non-operating revenues 610,169 121,140 125,040 125,040 125,040 125,040 125,040 Debt service (4,285,980) (8,743,610) (8,729,280) (17,661,343) (20,336,588) (35,648,195) (40,244,525) Interim Financing / Bond Proceeds 175,991,580 - 301,773,306 114,000,000 Decrease for increase in restricted for pension (1,619,275) Prior period adjustment (1,315,601) Net capital outlay (37,367,087) (96,632,119) (165,736,427) (194,816,001) (187,172,474) (203,626,855) (211,745,665) Transfers in/(out)(6,008,215) (6,150,501) (6,365,559) (6,438,094) (6,662,252) (6,700,000) (6,700,000) Net change in unrestricted reserves 9,747,850$ (39,141,062)$ (114,362,581)$ 28,480,839$ (135,769,105)$ 141,625,943$ (46,716,034)$ Unrestricted reserves 201,690,661$ 162,549,599$ 48,187,018$ 76,667,857$ (59,101,248)$ 82,524,695$ 35,808,661$ Less required reserves (6 months O&M)33,101,114 25,216,040 31,547,577 33,043,928 34,347,006 35,790,018 35,246,031 Reserves in excess of policy minimum 168,589,548$ 137,333,560$ 16,639,441$ 43,623,930$ (93,448,254)$ 46,734,678$ 562,630$ Water & Sewer Utility Fund Based on Fiscal Year 2025 Rate Study FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Operating revenues 19,642,048$ 21,050,069$ 22,737,527$ 24,561,102$ 26,515,564$ 27,966,751$ 29,497,755$ Less: operating expenses (exclude depr)(7,523,001) (10,005,930) (10,470,223) (11,054,813) (11,534,695) (12,080,687) (12,676,002) Net Operating Income 12,119,047 11,044,139 12,267,304 13,506,289 14,980,869 15,886,064 16,821,753 Non-Operating Income/(Expense): Interest earnings 2,284,479 1,248,986 1,010,837 730,079 523,300 422,812 422,812 Capital grants & contributions 44,776 Debt service (347,738) (1,332,563) (1,346,113) (1,338,063) (1,472,294) (1,726,525) (1,985,238) Interim Financing / Bond proceeds 8,000,000 8,500,000 8,500,000 Decrease for increase in restricted for pension (505,927) Prior period adjustment (252,760) Net capital outlay (7,196,130) (20,094,145) (21,790,860) (25,763,770) (25,139,120) (26,306,570) (23,838,860) Transfers in/(out)(3,602,329) (1,101,856) (1,074,557) (1,157,424) (1,250,234) (1,350,531) (1,458,026) Net change in reserves 2,543,418$ (10,235,439)$ (10,933,389)$ (14,022,889)$ (4,357,479)$ (4,574,750)$ (1,537,559)$ Unrestricted reserves 55,449,905$ 45,214,466$ 34,281,077$ 20,258,188$ 15,900,709$ 11,325,959$ 9,788,400$ Less required reserves (6 months O&M)5,736,500 6,220,200 6,445,400 6,775,200 7,128,600 7,578,900 8,059,600 Reserves in excess of policy minimum 49,713,405$ 38,994,266$ 27,835,677$ 13,482,988$ 8,772,109$ 3,747,059$ 1,728,800$ Based on Fiscal Year 2025 Rate Study Stormwater Utility Fund FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Gas operating revenues 40,267,284$ 41,072,630$ 41,894,083$ 42,731,965$ 43,586,604$ 44,458,336$ 45,347,503$ Less: Operating expenses (32,683,099) (33,467,493) (34,270,713) (35,093,210) (35,935,447) (36,797,898) (37,681,048) Net operating income 7,584,185 7,605,137 7,623,370 7,638,755 7,651,157 7,660,438 7,666,455 Non-Operating Income/(Expense): Interest earnings 1,591,925 800,000 500,000 350,000 750,000 750,000 750,000 Sale of surplus assets 454,580 - - - - - - Debt service - principal & interest (1,943,977) (1,944,778) (2,094,468) (1,570,713) (1,520,000) (1,520,000) (1,520,000) Net capital expenditures (8,014,298) (8,000,000) (18,000,000) (6,350,000) (6,350,000) (6,350,000) (6,350,000) Bond proceeds - - 12,000,000 - - Decrease for increase in restricted for pension (259,012) Prior period adjustment (740,137) Transfers in/(out)(4,383,431) (1,700,000) (1,700,000) (1,700,000) (1,700,000) (1,700,000) (1,700,000) Net change in unrestricted reserves (5,710,165)$ (3,239,641)$ (13,671,098)$ 10,368,042$ (1,168,843)$ (1,159,562)$ (1,153,545)$ Unrestricted reserves 32,512,273$ 29,272,632$ 15,601,534$ 25,969,576$ 24,800,733$ 23,641,171$ 22,487,626$ Less required reserves (6 months O&M)16,341,550 16,733,747 17,135,357 17,546,605 17,967,724 18,398,949 18,840,524 Reserves in excess of policy minimum 16,170,724$ 12,538,886$ (1,533,823)$ 8,422,971$ 6,833,010$ 5,242,222$ 3,647,102$ Gas Utility Fund Pro Forma Projections per Gas Department Based on Fiscal Year 2024 Rate Study FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Operating revenues 37,049,455$ 35,766,188$ 36,841,181$ 37,964,698$ 39,104,218$ 40,386,272$ 41,725,564$ Operating expenses (26,955,587) (30,391,969) (32,079,449) (33,581,443) (35,291,867) (37,201,086) (39,278,783) Net Operating Income 10,093,868 5,374,219 4,761,732 4,383,255 3,812,351 3,185,186 2,446,781 Non-Operating Income/(Expense): Interest earnings 2,356,429 1,269,314 1,295,139 1,163,307 1,023,811 1,012,614 1,029,901 Other non-operating income (expense)130,393 23,626 23,626 23,626 23,626 23,626 23,626 Debt service (97,303) (624,150) (634,841) (238,141) (238,141) (241,053) (250,195) Hurricane expenses (11,963,268) (668,000) - - - - - Hurricanes debris removal FEMA reimb 6,196,158 - 300,000 4,770,783 - - - Decrease for increase in restricted for pension (266,302) Net capital outlay expenditures (389,766) (3,600,000) (5,200,000) (10,400,000) (5,400,000) (5,500,000) (500,000) Prior period adjustment (537,475) Transfers in/(out)(4,452,162) (1,688,688) (1,900,830) (1,967,140) (2,026,265) (2,088,059) (2,150,732) Net change in unrestricted reserves 1,070,572$ 86,321$ (1,355,174)$ (2,264,310)$ (2,804,618)$ (3,607,686)$ 599,381$ Unrestricted reserves 52,783,129$ 52,869,450$ 51,514,276$ 49,249,966$ 46,445,348$ 42,837,662$ 43,437,043$ Less required reserves (6 months O&M)15,947,409 18,152,404 19,907,560 23,093,362 21,478,137 22,515,099 21,089,855 Reserves in excess of policy minimum 36,835,720$ 34,717,046$ 31,606,716$ 26,156,604$ 24,967,211$ 20,322,563$ 22,347,188$ Solid Waste and Recycling Fund Pro Forma Projections Per 2025 Rate Study